Home equity line of credit and home loan rates were close to or even above 8% in early 2025. Now, they are approaching a three-year decline. If you’ve been waiting for a chance to tap home equity, this might be it.
Today’s national average monthly HELOC rate is 7.20%. The average fixed rate for a home loan is 7.47%according to data analytics company Curins.
Both rates are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of 70%.
Home equity interest rates are priced differently than mortgage rates. Primary mortgage rates are guided by the 10-year Treasury, while secondary mortgage rates are based on the prime rate and the average. The prime rate is currently 6.75%. If the lender adds 0.75% margin, the HELOC rate would be 7.50%.
A home loan may have a different margin because it is a fixed interest product.
Every lender has their own way of pricing second mortgages, such as HELOCs or home equity loans, so you pay to shop around. Your rate will depend on your credit score, the amount of debt you carry, and the value of your line of credit compared to the value of your home.
And national average HELOC rates can include very low “introductory” rates that can last six months or one year. After that, your interest rate will fluctuate, probably starting at a very high rate.
Also, because home equity loans have a fixed rate, there is less chance of an introductory “teaser” rate.
A LOT: Read our guide to the best mortgage lenders.
The best HELOC lenders offer low down payments, a fixed rate option, and open lines of credit. A HELOC allows you to easily use your home equity in any way and in any amount you choose, up to your credit limit. Take out the rest; pay. Repeat.
Today, FourLeaf Credit Union offers a HELOC rate of 5.99% for 12 months on lines up to $500,000. That’s an introductory rate that will convert to a variable rate of 7.25% in one year. When shopping for lenders, be aware of both rates.
The best home loan lenders may be easy to find, because the fixed rate you pay will last for the duration of the repayment period. That means just one level to focus on. And you get a whole lot of money, so there are few things to consider.
And as always, compare fees and the fine print of payment terms.
Rates vary greatly from one lender to another, making it difficult to pinpoint a single, exact number. The current national average for a HELOC is 7.20% — and 7.47% for a home loan. Those can serve as a basis when purchase prices come from second mortgage lenders.
It’s probably a good idea to consider a HELOC or home equity loan now. You don’t get rid of that down payment on your home loan, and you can use the money taken from your balance on things like home improvements, repairs, and improvements. Almost anything, really.
If you take out the full $50,000 on a home equity line of credit and pay 7.25% interest, your monthly payment over a 10-year term would be $302. That sounds good, but remember, with a HELOC, the rate usually varies, so it changes from time to time, and your payments will increase over the course of the 20-year repayment period. A HELOC becomes a 30-year loan.
